Almost half of SMBs turn to primary communications service provider for Cloud

Amdocs has released new global research that explores small- to medium-sized businesses’ (SMB) cloud services consumption and purchasing patterns. The research identifies an opportunity for communications service providers to capitalise on this fast-growing segment by offering cloud-based services and bundling them with traditional communication services.

The research surveyed 1,311 SMB decision makers from North America, Europe, Latin America and Asia Pacific. The first study of such scale, this research offers valuable insight that can help service providers develop an effective cloud-based SMB offering strategy, including:
· Sixty-six percent of respondents said cloud-based services are very important to their business with 57 percent stating that their companies already take advantage of cloud-based services; 44 percent of those who are not yet using cloud-based services are actively considering it
· Most consumed services are for storage and backup (72 percent), computer networks (48 percent) and office software (41 percent)
· SMBs engage with three different vendors on average for their cloud-based services requirements
· Only 45 percent of respondents said their companies get cloud-based services from their primary service provider; 74 percent of respondents said they prefer to receive cloud-based services from their primary service provider, but 41 percent believe they can get better deals from independent cloud vendors, 32 percent did not ask for or receive information about cloud-based offerings from their primary service provider, and 31 percent do not believe their primary service provider even offers cloud-based services
· Sixty-eight percent said they are more likely to select a service provider that offers cloud-based services over one that does not, and 44 percent said they will switch from third-party cloud services providers to their primary communications services providers if offered bundles of traditional and cloud services
· 80 percent of respondents said they want to receive one bill for all the communication services they consume

“The research validates that there is increasing need and adoption of cloud-based services by SMBs,” said Ian Parkes, managing director at Coleman Parkes Research, who conducted the research on behalf of Amdocs. “The research identified that service providers are considered a viable and even preferred source for cloud-based services, representing a big revenue opportunity for service providers who choose to capitalize on this. Those who become a one-stop-shop for all SMB communication needs, focusing on what SMBs consider essential such as bundles with cloud-based and traditional services, as well as a unified bill, will be most successful.”

“To be able to capitalise on the SMB cloud-based services opportunity, communications service providers must have a convergent BSS and OSS systems environment that can cost-efficiently support both cloud-based and traditional services,” said Rebecca Prudhomme, vice president of product and solutions marketing for Amdocs. “Such a convergent systems environment, in combination with enhanced SMB self-service capabilities as offered by the Amdocs CES 9.1 portfolio, enables service providers to differentiate themselves from independent cloud-based services vendors and empower SMBs with cross-service bundles and discounts, tailored to their needs.”

Amdocs’ cloud offerings directly address service providers’ imperatives for success by helping them rapidly introduce new revenue streams with cloud-based services such as solutions for storage and backup, by enabling their cloud ecosystems and ICT services with fast partner onboarding and with converged BSS and OSS capabilities for handling and bundling existing and cloud services, and by leveraging cloud technologies (such as virtualisation) to reduce costs.